Merchants often bear the cost of chargebacks that can and should be disputed.
Chargeback representment is the process by which merchants can dispute a chargeback by gathering evidence and other information to demonstrate that the transaction was completed properly. Armed with sufficient evidence, the issuer then reverses the chargeback and the merchant is refunded. If the chargeback is not successfully represented, the merchant can elect arbitration, which results in additional fees.
In 2012, Merchants reported losing $3.5 billion to online payment fraud. Chargebacks account for nearly 43% of these losses at an average online order ticket value of $200. 
For a business of any size, the dollars start to add up. Are you leaving money on the table? More importantly, are you able to recover that money quickly?
Merchants represent about 56% of their fraud-coded chargebacks on average and nearly 30% of merchants represent all chargebacks. While representment wins can add up, it is important to analyze each business case for pros and cons because some chargebacks disputes or representment can cost more than a win is worth.
Handling chargebacks effectively is essential. Loss potential from a chargeback includes the dollar amount of the transaction, the operational costs of managing the chargeback as well as the actual merchandise.
We have provided a number of tips for managing your representment processes.
Speed counts. It is important to think about how quickly you can recover disputed funds to get your cash flow back working for your business.
Be proactive. Monitor chargebacks to analyze where there is room to take preventative measures. By tracking chargebacks by reason code, merchants are able to tie these reasons back to a specific remedy and incorporate.